Mr. Alan WilliamsTo ask the Secretary of State for Social Security what income it is assumed that a person will draw from savings of(a) £6,000, (b) £10,000, (c) £13,000 and (d) £16,000 when determining eligibility for reduced levels of community charge; and what marginal rate of return is assumed for each £1,000 savings over £3,000.
§ Mrs. Gillian ShephardThe information requested is shown in the table.
Tariff income assumed at various levels of capital Capital Tariff income (£ per week) 6,000 12 10,000 28 13,000 40 16,000 52 No tariff income from the first £3,000 of savings is assumed when assessing income-related benefits: the actual income received from the savings is disregarded.
When account is taken of the first £3,000 of savings, and of the application of the 15 per cent. benefit taper, the annual average interest rate implied by the tariff income rules varies from 0.2 per cent. (on capital of £3,250) to 2.6 per cent. (on capital of £15,750.01).